Global wealth report says 2022 marks first global wealth decline since 2008, predicts 38% surge by 2027

Morning! The 2023 Asia Cup 🏏will officially be kicking off next week with Pakistan hosting four matches across two venues - Multan and Lahore. Say hello to the adrenaline rush, potential heartbreak, and those after-work detours that will double your commute time due to road blockage 🙃

In this week’s edition:

💔 We are all broke af

🛢️ Oil refining but doing it responsibly

💪 Devil Vs Google

💱 Trade made simple

- The Itla Squad 💼

Business

Global 🌎️

Turns out: We are all broke

We all might have empty wallets right now but not for long… or at least that’s what the finance gurus seem to think.

The Global Wealth Report 2023, co-penned by Credit Suisse and UBS, says that 2022 marked the first global wealth stumble since the epic financial crisis of 2008 i.e. we haven’t been this broke since 2008. But on the bright side, they're predicting a 38% surge in global wealth (as measured in personal holdings of assets from real estate to stocks and shares) by 2027.

The winners and losers:

• Miley Cyrus was right: it really is a party in the U.S.A. i.e. it is the hotspot for ultrahigh net worth individuals - boasting 51% of the global VIPs having a worth of $50 million or more.

• 2022's wealth decline slightly leveled inequality. Millennials and Gen Xers in the U.S. and Canada gained, African-Americans were largely unaffected, while Caucasians and Latinos saw varied impacts.

• The report gave a high-five to Russia, Mexico, India, and Brazil for their wealth growth last year. And it doesn’t stop there – they’re expected to boost their wealth by 30% by 2027.

As they say, you win some and you lose some: 2022 wasn’t so rosy everywhere as the strong U.S. dollar made the world's wealth shrink by 3.6%. Even in the U.S., people's middle wealth dropped by 5.3% because the stuff they own that makes money (like stocks and funds) went down in value by a big 20.5%.

Looking ahead: Our pockets are about to get a whole lot heavier as middle-income markets are set to drive global wealth trends, leading to $110,270 wealth per adult, and 86 million millionaires by 2027.

TLDR: The Global Wealth Report 2023 highlights a dip in global wealth in 2022, the first since the 2008 financial crisis. But there's optimism: a 38% surge in global wealth is predicted by 2027. The U.S. is a wealth hotspot with 51% of individuals worth $50 million or more. Wealth shifts varied in impact, favoring some demographics in the U.S. and leveling inequality. Russia, Mexico, India, and Brazil saw wealth growth, expected to rise by 30% by 2027.

What else is new in news

✶ In July, India experienced the sharpest yearly retail inflation in 15 months. The prices of vegetables and cereals went through the roof, putting pressure on the government to step in and tackle the rising costs.

Local 🇵🇰

Pak is making sure that the grass is green on both sides

The outgoing government made some recent changes to the brownfield refining policy which is designed to improve existing refineries and their impact on the environment. Here's a breakdown of the main aspects of this policy:

All about the policy:

• Refineries are being offered incentives to upgrade their equipment and processes. This upgrade will allow them to produce Euro-5 grade fuels, which are cleaner and better for the environment.

• They also receive a form of price protection—10% on the price of gasoline, diesel, and similar fuels. This helps refineries manage their costs and operations.

• Refineries and the regulatory authority responsible for fuels will jointly establish a dedicated bank account which will facilitate cooperation for improvements. Additionally, refineries can benefit from tax breaks when bringing in new equipment.

Why not just build new refineries? because it will break the bank. While there might be a slight increase in fuel prices, upgrading existing refineries to produce cleaner fuels is more cost-effective (approximately $4 billion each) compared to building entirely new refineries (which could cost $10 billion or more).

TLDR: The outgoing government tweaked the brownfield refining policy to revamp current oil refineries for environmental benefits. Refineries get incentives to upgrade and produce cleaner fuels, along with price protection. They'll collaborate with regulatory bodies via dedicated accounts and receive tax breaks for new equipment. Upgrading is cheaper than building new refineries.

News Flash

✶Your morning tea is about to cost you a lot more as sellers and traders have increased the price of 900-gram labeled packages by Rs100 and raised loose tea prices by about Rs200 per kilogram.

Tech

Global 🌎️

Google SGE: Where were you when we were in college?

Devil works hard but Google works harder, especially when it comes to AI. It is back with some exciting updates for its AI-powered conversational mode in Search, known as the Search Generative Experience (SGE).

Google ain’t playing around: These updates are all about making the web more understandable and user-friendly.

• Ever come across a term that leaves you scratching your head while browsing and end up opening a new tab for a quick Google search and then going back to your web page? Google's new feature lets you hover over words for instant definitions, saving you the hassle of switching back and forth between tabs.

• Programming assistance through SGE is getting an upgrade too. Code segments will be color-coded with syntax highlights, makin it for easier to identify keywords, comments, and strings.

• You can now tap into the AI magic of SGE while you're browsing the web. Similar to Bing Chat, SGE enables users to access AI-generated lists of key points in articles and jump directly to specific sections of interest.

• There will also be AI-powered summaries. These points are clickable links that take you straight to the part you're interested in. Oh, and remember, this won't work for articles behind paywalls. Publishers can keep the content locked up if they want.

TLDR: Google's AI-powered Search Generative Experience (SGE) gets updates for better web understanding. Instant word definitions, color-coded coding help, AI-generated article key points, and clickable summaries are new features. Paywalled articles are excluded.

What else is new in news

✶The upcoming iPhone 15 in September has done the unthinkable: it has a generic charging port! Analysts and reports suggest that the new iPhone models might feature a USB Type-C charger port, commonly found in laptops, Android phones, iPads, and various other devices.

Local 🇵🇰 

PSW to cut the trade red tape

Making trade smoother and quicker, the Pakistan Single Window (PSW) - a digital platform and initiative that simplifies and streamlines cross-border trade processes- is now working closely with different government departments.

Trade made simple: Here's how they're making things better for traders:

• The PSW has teamed up with key government bodies like the Ministry of Narcotics Control (MNC), and partly with the Drug Regulatory Authority of Pakistan (DRAP). This partnership means traders can easily get licenses, certificates, and permissions online.

• When the PSW connects with these firms, getting documents for importing and exporting becomes a breeze. This change saves a lot of time and money for traders who do business across borders.

• The MMD ( Mercantile Marine Department) now can give out electronic certificates for ships and boats that are being imported. And you can get these certificates by simply applying online.

Looking ahead: PSW is holding training sessions to teach people how to use the system better almost 69,000 people already using the PSW system. They're also covering more places, services, and government agencies, and digitizing how trade gets done.

TLDR: The Pakistan Single Window (PSW) is collaborating with government departments to simplify cross-border trade. Traders can obtain licenses and certificates online, saving time and money. The Mercantile Marine Department now issues electronic certificates for imported ships.

Tech tour of news

✶Mashreq, a major financial player in the MENA region, has snagged a digital banking license from the State Bank of Pakistan (SBP), and soon be launching digital banking operations in Pakistan

More interesting Itla (اطلاع) we consumed:

📩 We would definitely recommend not reading this 2-minute read if you are at work because you wouldn’t wanna be seen wiping your tears away (definitely not speaking from experience). It is an insightful and heartbreaking commentary on grief and happiness by Mo Gawdat, a former senior executive at Google, and bestselling author on human happiness.

🎥 We might never know what makes Trevor Noah spout wisdom and we won’t try to. His take on the topic of ‘Men, Intimacy & The "Right to Sex"‘ is one of the most profound perspectives ever.